Innovation is in the (Clean) Air – The Inclusion of Aviation in the EU Emissions Trading Scheme as a Driver of Innovation in Air Transport

The paper looks at the inclusion of international aviation in the EU emissions trading scheme from the perspective of innovation. It argues that the initiative of the European Union to subject international aviation to the scheme has functioned as a catalyst for green innovation in the sector. Green innovation in aviation has particularly manifested itself in the areas of air traffic management, aeronautics and biofuels. The paper examines the funding mechanisms activated to foster innovation to address the issue of whether the EU has developed an innovation policy. Departing from the overarching goal of growth, which nowadays appears to be synonymous with sustainable development, the paper examines the contribution of the Environmental Policy Integration principle to the gradual coordination and alignment of EU policies and actions in the direction of sustainable development. Innovation is seen as a facilitator of this process. The paper concludes that although it does not appear that the EU has developed an autonomous system of horizontal rules on innovation, it does have plenty of instruments, which, if well-orchestrated, could lead to an innovation concert